scholarly journals A study of inflation effects on an EOQ model for Weibull deteriorating/ameliorating items with ramp type of demand and shortages

2013 ◽  
Vol 23 (3) ◽  
pp. 441-455 ◽  
Author(s):  
M. Valliathal ◽  
R. Uthayakumar
Keyword(s):  
Computer Software ◽  
Optimal Solution ◽  
Solution Procedure ◽  
Inventory Level ◽  
Decision Variable ◽  
Deterioration Rate ◽  
Eoq Model ◽  
Replenishment Policy ◽  
Demand Rate ◽  
Ramp Type Demand

This paper deals with the effects of inflation and time discounting on an inventory model with general ramp type demand rate, time dependent (Weibull) deterioration rate and partial backlogging of unsatisfied demand. The model is studied under the replenishment policy, starting with shortages under two different types of backlogging rates, and their comparative study is also provided. We then use the computer software, MATLto find the optimal replenishment policies. Duration of positive inventory level is taken as the decision variable to minimize the total cost of the proposed system. Numerical examples are then taken to illustrate the solution procedure. Finally, sensitivity of the optimal solution to changes of the values of different system parameters is also studied.

AN EOQ MODEL WITH CONTROLLABLE SELLING RATE

2008 ◽  
Vol 25 (02) ◽  
pp. 151-167 ◽  
Author(s):  
HORNG-JINH CHANG ◽  
PO-YU CHEN
Keyword(s):  
Distribution Function ◽  
Transaction Cost ◽  
Optimal Solution ◽  
Bivariate Distribution ◽  
Inventory Level ◽  
Selling Price ◽  
Eoq Model ◽  
Concrete Form ◽  
Demand Rate ◽  
Classical Economic

According to the marketing principle, a decision maker may control demand rate through selling price and the unit facility cost of promoting transaction. In fact, the upper bound of willing-to-pay price and the transaction cost probably depend upon the subjective judgment of individual consumer in purchasing merchandise. This study therefore attempts to construct a bivariate distribution function to simultaneously incorporate the willing-to-pay price and the transaction cost into the classical economic order quantity (EOQ) model. Through the manipulation of the constructed bivariate distribution function, the demand function faced by the supplier can be expressed as a concrete form. The proposed mathematical model mainly concerns how to determine the initial inventory level for each business cycle, so that the profit per unit time is maximized by means of the selling price and the unit-transaction cost to control the selling rate. Furthermore, the sensitivity analysis of optimal solution is performed and the implication of this extended inventory model is also discussed.

scholarly journals An Inventory System for Deteriorating Products with Ramp-Type Demand Rate under Two-Level Trade Credit Financing

2011 ◽  
Vol 2011 ◽  
pp. 1-15 ◽  
Author(s):  
G. Darzanou ◽  
K. Skouri
Keyword(s):  
Existence And Uniqueness ◽  
Trade Credit ◽  
Sufficient Conditions ◽  
Optimal Solution ◽  
Inventory System ◽  
Credit Policy ◽  
Replenishment Policy ◽  
Demand Rate ◽  
Credit Financing ◽  
Ramp Type Demand

An inventory system for deteriorating products, with ramp-type demand rate, under two-level trade credit policy is considered. Shortages are allowed and partially backlogged. Sufficient conditions of the existence and uniqueness of the optimal replenishment policy are provided, and an algorithm, for its determination, is proposed. Numerical examples highlight the obtained results, and sensitivity analysis of the optimal solution with respect to major parameters of the system is carried out.

Deteriorating Inventory Model under Permissible Delay in Payments and Fuzzy Environment

2016 ◽  
pp. 77-99 ◽  
Author(s):  
Nita H. Shah ◽  
Sarla Pareek ◽  
Isha Sangal
Keyword(s):  
Solution Procedure ◽  
Inventory Model ◽  
Variable Cost ◽  
Selling Price ◽  
Gravity Method ◽  
Deterioration Rate ◽  
Eoq Model ◽  
Fuzzy Environment ◽  
Demand Rate ◽  
Delay In Payments

This paper deals with the problem of determining the EOQ model for deteriorating items in the fuzzy sense where delay in payments is permissible. The demand rate, ordering cost, selling price per item and deterioration rate are taken as fuzzy numbers. The total variable cost in fuzzy sense is de-fuzzified using the centre of gravity method. The solution procedure has been explained with the help of numerical example.

scholarly journals A Global Optimizing Policy for Decaying Items with Ramp-Type Demand Rate under Two-Level Trade Credit Financing Taking Account of Preservation Technology

2013 ◽  
Vol 2013 ◽  
pp. 1-12 ◽  
Author(s):  
S. R. Singh ◽  
Swati Sharma
Keyword(s):  
Trade Credit ◽  
Sufficient Conditions ◽  
Optimal Solution ◽  
Credit Policy ◽  
Preservation Technology ◽  
Replenishment Policy ◽  
Demand Rate ◽  
Credit Financing ◽  
Delay In Payments ◽  
Ramp Type Demand

An inventory system for deteriorating items, with ramp-type demand rate, under two-level trade credit policy taking account of preservation technology is considered. The objective of this study is to develop a deteriorating inventory policy when the supplier provides to the retailer a permissible delay in payments, and during this credit period, the retailer accumulates the revenue and earns interest on that revenue; also the retailer invests on the preservation technology to reduce the rate of product deterioration. Shortages are allowed and partially backlogged. Sufficient conditions of the existence and uniqueness of the optimal replenishment policy are provided, and an algorithm, for its determination, is proposed. Numerical examples draw attention to the obtained results, and the sensitivity analysis of the optimal solution with respect to leading parameters of the system is carried out.

scholarly journals Order Level Inventory Models for Deteriorating Seasonable/Fashionable Products with Time Dependent Demand and Shortages

2009 ◽  
Vol 2009 ◽  
pp. 1-24 ◽  
Author(s):  
K. Skouri ◽  
I. Konstantaras
Keyword(s):  
Inventory Model ◽  
Time Dependent ◽  
Inventory Models ◽  
Deterioration Rate ◽  
Replenishment Policy ◽  
Demand Rate ◽  
Increasing Demand ◽  
Ramp Type Demand ◽  
Unsatisfied Demand ◽  
Dependent Demand

An order level inventory model for seasonable/fashionable products subject to a period of increasing demand followed by a period of level demand and then by a period of decreasing demand rate (three branches ramp type demand rate) is considered. The unsatisfied demand is partially backlogged with a time dependent backlogging rate. In addition, the product deteriorates with a time dependent, namely, Weibull, deterioration rate. The model is studied under the following different replenishment policies: (a) starting with no shortages and (b) starting with shortages. The optimal replenishment policy for the model is derived for both the above mentioned policies.

scholarly journals Optimal Replenishment Policy for Weibull-Distributed Deteriorating Items with Trapezoidal Demand Rate and Partial Backlogging

2016 ◽  
Vol 2016 ◽  
pp. 1-10 ◽  
Author(s):  
Lianxia Zhao
Keyword(s):  
Optimal Solution ◽  
Solution Procedure ◽  
Deteriorating Items ◽  
Optimal Order ◽  
Partial Backlogging ◽  
Total Cost ◽  
Replenishment Policy ◽  
Demand Rate ◽  
The Stability ◽  
Theoretical Results

An inventory model for Weibull-distributed deteriorating items is considered so as to minimize the total cost per unit time in this paper. The model starts with shortage, allowed partial backlogging, and trapezoidal demand rate. By analyzing the model, an efficient solution procedure is proposed to determine the optimal replenishment and the optimal order quantity and the average total costs are also obtained. Finally, numerical examples are provided to illustrate the theoretical results and a sensitivity analysis of the major parameters with respect to the stability of optimal solution is also carried out.

A Fuzzy EOQ Model for Deteriorating Items With Allowable Shortage and Inspection Under the Trade Credit

2018 ◽  
pp. 233-249
Author(s):  
Chandra K. Jaggi ◽  
Bimal Kumar Mishra ◽  
T. C. Panda
Keyword(s):  
Trade Credit ◽  
Method Comparison ◽  
Deteriorating Items ◽  
Order Quantity ◽  
Centroid Method ◽  
Deterioration Rate ◽  
Eoq Model ◽  
Permissible Delay In Payment ◽  
Demand Rate ◽  
Fuzzy Cost

This chapter develops an economic order quantity model for deteriorating items with initial inspection, allowable shortage under the condition of permissible delay in payment by fuzzify the demand rate, deterioration rate and inspection parameter of non-defective parameter based on as triangular fuzzy numbers to fit the real word. The total fuzzy cost function has been defuzzified using signed distance and centroid method. Comparison between these two methods has also been discussed. The validity of the model has been established with the help of a hypothetical numerical example.

On the EOQ model with inventory-level-dependent demand rate and random yield

1994 ◽  
Vol 16 (3) ◽  
pp. 167-176 ◽  
Author(s):  
Shaul K. Bar-Lev ◽  
Mahmut Parlar ◽  
David Perry
Keyword(s):  
Inventory Level ◽  
Random Yield ◽  
Eoq Model ◽  
Demand Rate ◽  
Dependent Demand Rate ◽  
Dependent Demand
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